US jobless claims increases amid tight labor market

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• Initial jobless claims increased to 206,00 last week 
• The 4-week moving average edged down to 203,750, lowest since March 1969

New claims for unemployment in the United States have increased to 206,000, signaling that the job market is trying to recover from the coronavirus pandemic. 

The Labour Department reported on Thursday a substantial increase of 18,000 from the previous week which was revised up by 4,000 from 184,000 to 188,000.

The 4-week moving average was 203,750, a decrease of 16,000 from the previous week's revised average. This is the lowest level for this average since November 15, 1969, when it was 202,750.

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The advance seasonally adjusted insured unemployment rate was 1.4 percent for the week ending December 4, a decrease of 0.1 percentage points from the previous week's unrevised rate. 

The fall in the number of Americans claiming unemployment benefits dropped sharply, reflecting the impact of the end of several federal pandemic benefits programs by the states.

Though the recently discovered Omicron version of Covid-19 poses a possible danger to the labor market and the entire economy.

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Job Creation

The Labor Department said that nonfarm payrolls in the country increased by 531,000 seasonally adjusted jobs in October, up from 312,000 in September, which had been revised from 194,000.

The jobless rate decreased to 4.6% in October from 4.8% in September. Last month, the number of Americans working or looking for employment increased, as did the average hourly pay in the U.S.

U.S private companies added employment at a faster pace in November. According to the ADP National Employment Report released on Wednesday, private payrolls climbed by 534,000 jobs last month.

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US Treasury Yields

The Treasury yield in the United States fell early Friday after a steady increase due to growing concerns over the rapid spread of the Omicron coronavirus strain. 

At 4:28 a.m. ET, the yield on the benchmark 10-year Treasury note decreased by more than 3 basis points to 1.421 percent. The 30-year Treasury bond yield increased to 1.857 percent.

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